Milwaukee-based law firm revives once-dead condo project

The slow-developing turnaround for Madison's Broadway-Lakepoint neighborhood might finally speed up.

The Milwaukee law firm Beck, Chaet, Bamberger & Polsky SC is now in control of a $4 million affordable condominium project on Lake Point Drive that was one of the city's key efforts to invigorate the neighborhood.

Marie Nienhuis, an attorney with the firm, said a project manager will be selected soon to finish off the development.

Madison's Community Development Authority in 2003 began looking at the project, which was slated to produce 50 new condominiums through renovation and new construction on the street's 1800 block. The CDA selected Milwaukee-based Lake Point Madison LLC as the developer.

The developer, Nienhuis said, completed some new construction and exterior work before hitting financial trouble.

Ann Zellhoefer, Madison's assistant city attorney, said Lake Point Madison failed to make its quarterly interest payment earlier this year on a $2 million loan for the project. After a letter demanding payment was sent to the developers, Lake Point Madison reported it could not finish the project.

Representatives from the company could not be reached for comment before deadline.

"We're all subject to the realities of the market," Nienhuis said. "I'm almost certain this had to do with what happened with condos and housing in the last year."

Beck, Chaet, Bamberger & Polsky also controls the second phase of the Metropolitan Place condominium development in Madison and the First Place development in Milwaukee.

The Madison CDA wanted the firm to take over the Lake Point project, Nienhuis said, and a Dane County judge Friday ordered the turnover.

"We'll take stock of what's there," Nienhuis said, "and figure out how to put it in better shape for selling."

Representatives from the firm and Percy Brown, Madison's economic revitalization supervisor, spent Tuesday and Wednesday interviewing candidates to oversee construction work and real estate agents to sell the remaining units.

Brown was unavailable for comment, but Nienhuis said Steven Looft, a developer who formerly worked with VJS Development Group LLC, Pewaukee, was one of the law firm's candidates for project manager.

Though she couldn't say for sure when the project might be complete, Zellhoefer said the city wants to take advantage of the summer selling market for the project. She said 21 of the 50 units are sold.

Zellhoefer also said Madison shouldn't be faulted for pursuing a condo project -- even an affordable one -- in a weak market.

"Construction only started a couple years ago," she said. "But it was planned and started before the market tanked. We couldn't have seen this coming."

George Twigg, spokesman for Madison Mayor Dave Cieslewicz, said the CDA shouldn't wait for a resurgence in the market to finish the project.

"It can take a while to go from concept to planning to construction," he said. "The day will come again when costs go back up and units will be going at a rapid clip.

"We're on the road to turning the neighborhood around. We've made a lot of progress. We shouldn't stop now."

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